variable factors of production are subject to diminishing marginal returns.

increasing output spreads overhead costs over a larger number of units.

the price of variable inputs tends to increase when the firm purchases more of them.

it requires more variable inputs to produce a larger level of output.

Producer Theory

Government Regulations

Market Structure

same as the marginal cost curve above the average variable cost curve.

same as the total cost curve above the price

same as the marginal cost curve below the average variable cost curve

same as the marginal cost curve

The firm is making a profit.

The firm is in a loss.

The firm is making a zero profit.

Insufficient information to make any prediction.